Charles & Colvard's 3Q Profit +13%

Charles & Colvard reported sales of $5.08 million, a 76 percent year-on-year increase, for the third quarter that ended on September 30. Costs and expenses rose 63 percent to $3.05 million. Net income increased 13 percent to $123,625 or 1 cent per share, Rapaport reported.
The company held $11.9 million in cash and investments and no long-term debt as of September 30. Loose moissanite sales increased 71 percent to approximately $3.8 million during the quarter.  Finished jewelry sales increased 90 percent year on year to approximately $1.3 million.
“Continued top-line revenue growth in the first three quarters of 2012 in excess of 60 percent over the prior year period validates we are on the right track,” said Randy N. McCullough, the chief executive of Charles & Colvard. “I am extremely excited with our results as we continue to position our company to become a powerful collection of brands through multiple sales channels.
“We continue to invest in our direct-to-consumer retail channels, Lulu Avenue and Moissanite.com, in order to provide Charles & Colvard with potential significant future revenue, profitability, and shareholder value. Recently, we accomplished several important initiatives that build upon their foundation to help achieve these goals,'' he said.
McCullough added that Charles & Colvard entered into a services and licensing agreement with JudeFrances Jewelry Inc., where it would custom design fashion and moissanite jewelry for the company's Lulu Avenue property. ''This provides Lulu Avenue the ability through JudeFrances, the coveted designer jewelry brand known for stunning designs and high-quality pieces, to offer exclusive jewelry designs available nowhere else,'' he said.